In a recent judgment on December 15, 2023, the Hon’ble Andhra Pradesh High Court delved into the intricacies of natural justice in the case of TSN Old Iron Scrap Merchants versus the Deputy/Assistant Commissioner of State Tax [Writ Petition No. 32206 of 2023]. The case revolved around the issuance of a Show Cause Notice (“SCN”) to the petitioner, the subsequent personal hearing, and the implications of non-appearance on the designated date.
Facts:
The saga began when TSN Old Iron Scrap Merchants received an SCN on May 27, 2023. The notice mentioned a letter sent to NAHI on March 1, 2023, requesting tollgate data. The petitioner argued that although they received the Impugned Order on August 3, 2023, the information or report from NAHI was never supplied to them.
The petitioner further contended that the notice for personal hearing was served on July 17, 2023, with the hearing scheduled for the same day. Due to this short notice, they were unable to attend. Subsequently, another notice for personal hearing was issued on July 21, 2023, for a hearing scheduled on July 24, 2023. The petitioner cited the weekend and insufficient time for personal appearance as reasons for non-attendance.
Issue:
The key issue at hand was whether the failure of the assessee to appear before the GST Officer on the designated date for personal hearing amounted to a violation of natural justice.
Court’s Decision:
The Andhra Pradesh High Court, in its judgment on December 18, 2023, made the following observations:
- Justifiability of Non-Appearance: The court opined that the notice for the personal hearing was duly served on July 21, 2023, fixing the date for July 24, 2023 (Monday). The petitioner failed to provide a satisfactory reason for not appearing on the designated date. The court dismissed the explanation of Saturday and Sunday not being for the fixed date, emphasizing that the petitioner had no justifiable reason for their non-appearance. It stressed that if a person does not avail the opportunity of personal hearing, they cannot later complain about the same.
- Disclosure of Information in SCN: The court held that even if the copy of the information received was not supplied, the contents were disclosed in the SCN. According to the court, this disclosure fulfilled the principles of natural justice as the material was made available to the petitioner. Moreover, the petitioner had submitted a reply to the SCN on July 7, 2023. The Impugned Order was passed after considering this response.
- Statutory Alternative Remedy: The court acknowledged that the petitioner had a statutory alternative remedy of appeal. If dissatisfied with the proceedings, the petitioner could seek recourse through this alternative in accordance with the law.
In conclusion, the Andhra Pradesh High Court found no violation of principles of natural justice in this case. The petitioner was deemed to have had ample opportunities for personal hearing, and the statutory remedy of appeal remained available. Consequently, the writ petition was dismissed.
This judgment highlights the importance of adhering to principles of natural justice and utilizing statutory remedies available to parties in dispute with tax authoritie
